RISMEDIA, June 30, 2011—Even with home sales and prices continuing to fall nationwide, millions of Americans will still navigate the process of buying and selling homes this summer, and for many, the sheer volume of details and decisions can be overwhelming. With so much to consider when buying or selling a home, it can be […]

RISMedia, June 3, 2011—When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process. The irony is that […]

RISMEDIA, May 16, 2011—Men and women may indulge in the joys of shopping, but when it comes to financing the biggest purchase of their lives, neither is a shop-a-holic. That’s because, according to a new survey from ING DIRECT USA, 56 percent of people buying a home do not use the Good Faith Estimate (GFE) for its original purpose—to shop around and compare mortgage offers.

Despite the federal government’s multiple revisions to the GFE to make it easier to understand and comparison shop for mortgage estimates, 70 percent of homeowners chose a mortgage provider without doing any personal research beforehand, the survey says. The GFE clearly states that consumers should “compare this GFE with other loan offers, so you can find the best loan.”

“The Good Faith Estimate is one of the most crucial documents a homebuyer will receive before making the biggest purchase of their life,” says Arkadi Kuhlmann, President and CEO of ING DIRECT USA, the nation’s largest direct bank. “If it is too complicated and not being used to help homeowners find the right mortgage for them, then the GFE is just a waste of three pieces of paper.”

New Look GFE Still Complicated
The Good Faith Estimate itself could be partly to blame for homeowners’ lack of enthusiasm to comparison shop for a mortgage. Even after the federal government’s attempt to streamline the GFE, more than one in three (36 percent) homeowners described the GFE as being “complicated” or a “waste of time.” Although some homeowners described the GFE as being “simple” or “easy to understand,” 68 percent of homeowners surveyed were unable to correctly identify, for example, the purpose of the Title Services charge on the GFE. Additionally, 53 percent of homeowners spent 30 minutes or less reading and reviewing the GFE. One in ten (11 percent) homeowners never reviewed the document.

Clear up Home Buying Confusion
To bring clarity to the mortgage process and help educate consumers about the value of shopping for a mortgage, today, ING DIRECT introduced Clear Orange —a website and online tool designed to demystify and simplify the Good Faith Estimate.

Clear Orange makes the costs associated with the GFE easier to understand by simplifying technical mortgage jargon, highlighting which mortgage costs are unavoidable and distinguishing between fees based on a home’s purchase price.

Visitors to the site have the option of printing out an easy to understand Good Faith Estimate explanation that they can use while reviewing their own GFE. This document breaks down the technical terms found in the GFE. Additionally, Clear Orange walks users through a step by step tutorial of closing costs that explains why they are charged and who charges for them.

“On average, homeowners ranked buying a home as being more stressful than changing jobs, getting married or having kids,” says Kuhlmann. “Buying a home should be exciting, not stressful. We hope Clear Orange will clear up some of the confusion about buying a home.”

RISMEDIA, May 5, 2011—As the housing market continues to struggle, home buyers appear ill-prepared to take out a mortgage, answering basic questions about mortgage information wrong nearly half (46 percent) of the time, according to a Zillow® Mortgage Marketplace survey. In fact, 44 percent admitted they are not confident in their knowledge of mortgages or […]

RISMEDIA, April 29, 2011—Potential homeowners who participate in pre-purchase education and counseling programs may be more likely to pay their mortgages on time, although the evidence on this point is not consistent and compelling, according to a study released today by the Mortgage Bankers Association (MBA). The study also finds that those who participate in […]

RISMEDIA, April 13, 2011—Don’t let Washington or Wall Street stop the entrepreneurial spirit in you. We are in a period of history right now where as an entrepreneur, you want to build wealth and you can’t rely on anyone else. The real estate market is here for you and the revival is coming. Don’t miss […]